The role of IT in a debt collection environment
by Chris Mateyu
Sales & Marketing Executive - Microworks (Pty) Ltd.
posted 7 March 2011
INTRODUCTION
Any organization with a large book of debt will need a dynamic collection solution with modules covering the entire collection process to enable high collection figures. This article will briefly touch on the deliverables that should be part of your collection management system.
THE ROLE OF A DYNAMIC COLLECTION SOLUTION
A dynamic collection solution should assist collection agents to effectively manage and control a large number of activities with little human intervention to ensure higher collection results. The system should be an indispensable tool for both collection managers as well as collection agents by firstly, delivering management information (such as collection dashboards) and secondly, collection automation features (such as automated SMS messages to late paying debtors, automated correspondence, automated collection process management and many more). In short, a dynamic collection solution should allow companies to collect more money faster using fewer resources.
PROCESS CUSTOMIZATION
The solution should allow a custom collection process to be tailor-made to suit the specific organization's collection policies and procedures. Collection processes must focus on automation where possible; however, where human intervention is necessary it must be monitored and managed effectively to maximize results.
ACTIVITY MANAGEMENT
The solution should enhance the performance of collection activities by adding value at key points in the activity life-cycle. Examples of where the collection solution can add such value are automated dialer functionality, call recording, prompt to follow-up lagging activities, reminders to update the account contact details, prioritization of activities, timing of activity performance, activity result qualification, etc. Enhancements at the activity level will affect the entire collection process and result in a very effective and efficient collection department.
SYSTEM INTEGRATION
The collection solution should be tightly integrated into other core systems in your organization such as the main accounting system, telephony system and your enterprise services bus. Information flow between the collection solution and other systems should be automated, timely and accurate.
MANAGEMENT TOOL
The solution should assist senior management to monitor the collection process at a glance without a "walk about" in the call centre. The state of the entire collection process should be easy to understand by looking at key graphs and charts. Potential issues must be highlighted before they become serious problems.
REPORTS AND DASHBOARDS
A key strength of a debt collection solution should be the functionality of comparative reporting on performance versus set targets. Such reports should be viewable for the entire collection department, for a specific team or for a specific collection agent. Reporting of this nature facilitates accurate measurement which, in turn, will lead to step-by-step improvement in the collections process. Comparative collection results should be easily accessible: for example mounting a dashboard monitor in the collection department is advisable. Collection departments should not neglect the task of setting and managing clear goals and targets. "No goals…..no direction……and therefore no satisfactory result. Goals are the blue prints that can then be translated into action plans that lead to ultimate success" Dr Brian Jude
CONTINUOUS DEVELOPMENT OF AN EFFECTIVE & EFFICIENT DEBT COLLECTION SOLUTION
Over and above the actual system performance a dynamic collection solution must be continuously developed in close collaboration with all stakeholders. The organization or department responsible for continuous development of the solution should adhere to industry standard development methodologies. Continuous development of your collection solution will ensure that it stays current as it grows and changes with your organization.
EMERGING TRENDS
Traditionally collection departments use their main accounting packages as the main tool for their collection agents. These accounting packages have a very broad focus of which collecting overdue accounts is not high on the list of priorities. As new specialized collection solutions enter the market, more and more forward thinking organizations are turning to these solutions to increase their efficiency by collecting more money faster with fewer resources.
SUMMARY
The need for highly effective and efficient collection departments has never been greater. Gone are the days where organizations can get by using inefficient systems and hand-written notes as collection tools. Collection departments need to be worth their weight in gold by addressing the debt problem with fewer resources – this can only be achieved by implementing a dynamic IT-driven collection solution which specializes in optimizing a collection department's processes and procedures.
About the Contributor
Microworks (Pty) Limited is a leading specialist debt solution company in the Republic of South Africa. We deliver integrated consulting and debt collection software solutions to hundreds of companies across various industry sectors such as finance, education, healthcare, third-party collection, government and many more. We work with organizations to develop solutions and continually create innovative means to improve collection performance and enhance our customers' profitability.
Mr Chris Mateyu is the Sales & Marketing Executive at Microworks.
